An entrepreneurial finance study: MSME performance based on entrepreneurial and financial dimensions

Rita, Maria Rio; Utomo, Mohamad Nur

doi:10.26905/jkdp.v23i2.3076

Cited by 6 publications

(8 citation statements)

References 31 publications

(35 reference statements)

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“…According to Schumpeter's (1934) theory, entrepreneurship is defined as developing new inventions in the business by manufacturing products at various phases of the process, then creating marketplaces and having inputs by forming new organizations. Innovation and creativity are essential concepts in business because they can introduce new products or services to the market (Rita & Utomo, 2019).…”

Section: Theory Of Entrepreneurshipmentioning

confidence: 99%

COVID-19 Pandemic Challenges for MSMEs: Strategic Options for Surviving in the New Normal Era

Saptono

Pratiwi²

2022

Jurnal Ekonomi & Bisnis JAGADITHA

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The purpose of this study is to analyze the obstacles faced by MSMEs during the COVID-19 outbreak; and to analyze various MSME survival strategies in dealing with the COVID-19 outbreak and the new normal era. This study employs descriptive qualitative methods. Secondary data is gathered from secondary sources such as books, scientific publications, government rules, and policies. Based on the findings of this study, it reveals that MSME actors must recognize the competitive advantages of their business. MSMEs can use social media marketing and record financial reports following SAK EMKM. MSMEs can use cloud accounting to streamline the accounting process, consider customer relationship marketing strategies, and follow health protocols in running their business workplace. Several ways are expected to help MSMEs in their role as the backbone of the nation's economy.

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Section: Theory Of Entrepreneurshipmentioning

confidence: 99%

COVID-19 Pandemic Challenges for MSMEs: Strategic Options for Surviving in the New Normal Era

Saptono

Pratiwi²

2022

Jurnal Ekonomi & Bisnis JAGADITHA

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“…However, it turns out that these informal loans burden them with higher interest rates which can eventually eat them up. Interestingly, Rita and Utomo [38] cited Bohner and Dickel who discoursed that a strategy to grow businesses is to secure investments as a main stream of funding. Asset Turnover having a significant negative effect on Return on Assets means that generating net sales using larger amount of average assets decreases the financial performance of Philippine MSMEs.…”

Section: Multiple Linear Regressionmentioning

confidence: 99%

The Financial Factors Affecting the Financial Performance of Philippine MSMEs

Pagaddut¹

2021

ujaf

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Micro, small and medium enterprises (MSMEs) are considerably contributory to social and economic progress and prosperity through their entrepreneurial capacities and capabilities. However, they experience constraining challenges that importunately impair their abilities, failing to optimally engage themselves in the privileging opportunities around, particularly in the financial aspect. This paper aims to establish the financial factors affecting the financial performance of Philippine MSMEs whose audited financial statements are utilized to extract financial ratios needed for the study. It also aims to determine the factor structure that can explain the variation among these financial factors and to determine the cohesive cluster that can separate these financial factors. It employed multiple linear regression, factor analysis and cluster analysis in order to respectively achieve its objectives. It establishes that debt ratio, asset turnover and gross profit margin have a significant effect on return on assets. It further establishes that there are two significant factor structures, namely "Sustainability" ratios and "Efficiency" ratios, explaining the variation among these financial ratios. It furthermore establishes that there are two cohesive clusters, namely "good" ratios and "poor" ratios, separating these financial ratios. It suggests that MSMEs should remain self-sufficient and self-reliant, without unreasonably depending on debts, hence should adequately afford capital to finance their businesses. Further, they should optimally operate to generate sales by efficiently employing their resources. Furthermore, they should judiciously control costs, without compromising quality of their products and services, in order to increase their margin. They should reinforce their performance by regularly advancing their efficiency and sustainability. They should work well to sustain good ratios and improve poor ratios. Notably, this paper suggests that stakeholders sustainably support MSMEs in light of creativity and collaboration.

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“…Many factors impede the production of MSMEs' goods, especially the internal readiness of the MSMEs (Rita & Utomo, 2019). One of them is the lack of promotion of regional products beyond the region, which makes it increasingly difficult for MSMEs to exist (Kawira et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…MSMEs are required to consider performance as a condition as one of their strategy (Rita & Utomo, 2019). Financial performance is an operational activity a firm engages in to entice investors and promote product growth and marketing innovation.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

MSMEs DIGITAL MARKETING AND ENTREPRENEURSHIP'S FACTOR OF PERFORMANCE: JAMBI (INDONESIA) PERSPECTIVE

Usmayanti

Pangestu

2022

jepk

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This research investigates the entrepreneurial dimension, innovation, and digital marketing on market and finance performance. These research samples consist of 260 MSME actors in the city of Jambi. This study employs the Likert scale to measure construct variables in order to test their validity and reliability. The data and hypothesis of this research were examined using partial least square (PLS). The findings of this study indicate that entrepreneurial factor influences innovation and digital marketing positively. Innovation and digital marketing positively impact the performance of MSMEs. However, innovation and digital marketing have no relationship.

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An entrepreneurial finance study: MSME performance based on entrepreneurial and financial dimensions

Abstract: This is an open access article under the CC-BY-SA license

Cited by 6 publications

References 31 publications

COVID-19 Pandemic Challenges for MSMEs: Strategic Options for Surviving in the New Normal Era

COVID-19 Pandemic Challenges for MSMEs: Strategic Options for Surviving in the New Normal Era

The Financial Factors Affecting the Financial Performance of Philippine MSMEs

MSMEs DIGITAL MARKETING AND ENTREPRENEURSHIP'S FACTOR OF PERFORMANCE: JAMBI (INDONESIA) PERSPECTIVE

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